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Retirement For Business Owners

Posted April 28, 2023

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Remember the first major decision you made as an entrepreneur, the initial days of running your business, and the excitement of landing a big client? Can you recall the butterflies in your stomach, the pounding of your heart, or the whirlwind of thoughts as you faced the uncertainty of what would follow?

Starting a business, pitching to clients, or making significant decisions can be overwhelming but are essential for your company’s success. Similarly, retirement can seem like a daunting prospect, particularly for business owners like you.

At Thayer Financial, we understand that retirement can feel intimidating, and the unique challenges of retiring as a business owner can make the process seem even more complicated. As your partner in prosperity, we’re here to support you in planning for retirement and transitioning into that well-deserved phase of life.

There’s a lot to learn about retirement as a business owner, but don’t worry! We’ve put together five essential facts about retirement that we believe will help you feel more confident moving forward:

Social Security benefits might be a bit different for business owners.

Social Security benefits are determined by your average earnings throughout your career. For business owners like you, this calculation can be a bit more complicated due to fluctuating incomes. If you’ve been paying yourself a smaller salary to reinvest in your business, you might also receive lower Social Security benefits.

Keep in mind both personal and business expenses for retirement.

When planning for retirement, don’t forget to consider not only your personal expenses but also your business-related costs. These may include employee wages, rent for your business property, and ongoing expenses like utilities and insurance. You might need to plan for a longer retirement than employees since you may still need to support your business even after stepping back from daily operations.

Your business can be your retirement nest egg.

Unlike employees with retirement accounts like 401(k)s, you might need to rely on your business as a source of retirement income. This can involve selling your business, receiving distributions, or passing the torch to a family member or employee. Planning for this transition well in advance is a good idea to ensure a smooth and profitable exit.

Tax planning is your friend for retirement income.

Tax planning is essential for any retirement income but can be particularly important for business owners. You may have multiple income streams, including your business, Social Security benefits, and investments. Different tax rates and rules might apply depending on your income source. Collaborate with a financial advisor, like us at Thayer Financial, and a tax professional to develop a tax-efficient retirement income strategy.

Start planning for retirement early – it’s never too soon!

It’s always a good idea to start retirement planning early, but it’s especially important for business owners like you. Since you may need to invest more in your business to ensure its success, you might have less money for retirement savings.

How Thayer Financial Can Help

Retirement planning is important for everyone, but business owners like you face unique challenges. By understanding these five critical facts about retirement, you can create a retirement plan to help you achieve your retirement dreams. With Thayer Financial by your side, we’ll personally guide you through the complexities of retirement planning as a business owner – like a good friend would!

Thayer Financial, L.L.C. (“Thayer Financial”) is a registered investment adviser offering advisory services in the States of North Carolina, Tennessee, Texas and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. This website’s presence on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by Thayer Financial in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or according to an applicable state exemption.

All written content on this site is for information purposes only. Opinions expressed herein are solely those of Thayer Financial, L.L.C., unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to other parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.

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Hickory, NC 28602

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